Transcript of "1Q06Transcriptprerecordcoments"

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PPG Industries, Inc. First Quarter 2006 Financial Results
William H. Hernandez, Senior Vice President, Finance, April 20, 2006 Recorded Comments
In the next few minutes, I’ll review our strong first quarter performance for 2006. I’ll also
comment on various aspects underlying our performance. Before getting into all the details,
let me quickly recap the quarter:
• PPG delivered all-time record first quarter sales. Also, despite a traditionally slower
quarter seasonally, we nearly eclipsed our all-time quarterly sales record for any quarter.
This marks twelve consecutive quarters, or three years in a row, of quarterly year-over-
year sales records. Individual first quarter sales records were achieved in eight of our
fifteen businesses, with several businesses posting year-over-year sales gains of well
over 10%.
• Sales increases were driven by both price and volume gains. Strong volume growth
was achieved in coatings with five of our six businesses posting, at least, mid-single digit
volume growth, and also in optical where volumes grew over 20%. Sales gains from
several business acquisitions in 2005 offset about half of the negative impacts from
currency, primarily Euro related.
• Earnings-per-share of $1.11 included $0.14 per share related to our previously
announced restructuring and $0.03 per share for our proposed asbestos settlement.
This EPS figure represents an all-time first quarter record for PPG easily surpassing any
other first quarter.
• These strong earnings are despite energy costs that are still very high by historical
standards. While natural gas costs abated somewhat during the quarter versus the
fourth quarter of 2005, they were still 60% higher than the first quarter of 2005.
• Coatings raw material costs have continued to rise but the pace has slowed from last
year. Coatings ongoing operating margins continued to improve as selling prices and
cost improvements remained a priority.
Now I will discuss these items in a little more detail.
• PPG once again delivered an excellent quarter achieving all-time record first quarter
sales of over $2.6 billion. Overall sales for the quarter increased 6% year-over-year,
with local currency sales up about 8%. Our first quarter sales are up over 40% since
2002 and this marks the third consecutive year we achieved a first quarter sales record.
Our selling prices improved 4% and volumes improved 3%. Business acquisitions made
in 2005 added 1%, while currency reduced our sales by 2%, driven primarily by the Euro.
• We had five businesses at or above 10% revenue growth led by our optical business
where we delivered a 20% gain. This marks the eighth consecutive quarter of double-

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digit year-over-year growth for optical, and we set a new all-time quarterly sales record
for any quarter.
Record first quarter sales were also achieved in five of our six coatings businesses, led
by double-digit growth in our industrial, aerospace and architectural businesses.
In glass, our architectural flat glass business, which we renamed performance glazings
to better convey our value-added focus, increased sales nearly 15% to a new first
quarter sales record, driven by our value-added product supplied to a robust commercial
construction market.
• Our first quarter earnings were reduced by our previously announced restructuring and
severance actions. The financial impact of these actions totaled about $35 million
dollars pre-tax or $23 million after-tax and related, primarily, to severance costs in
several of our businesses. These actions will result in annual savings approximately
equal to the one-time costs. The pre-tax totals by business are about $33 million in
coatings and $2 million in glass. While certain additional actions will be finalized later in
2006, we do not expect the remaining costs associated with our current restructuring
plans to be significant.
Now looking at the ongoing earnings performance of our businesses:
• Versus last year, coatings ongoing operating margins, excluding restructuring in 2006
and the unfavorable legal ruling in 2005, improved by nearly 200 basis points. This was
a result of selling price and volume increases, our focus on meeting customer
requirements and a variety of manufacturing and overhead cost actions. During the
quarter, coatings raw material costs increased about 4% year-over-year or about 20
million dollars, while our overall selling prices increased by 3%.
Since the second quarter of last year, we have continued to deliver on our commitment
to restore operating margin. Our objective, however, is to restore our industry leading
margins back to historic levels. Some of our coatings businesses have not yet offset the
rise in raw material costs. We will continue to aggressively pursue selling price
increases in all businesses, and to be ever present with our cost diligence.
• Our costs for natural gas used in our chemicals and glass businesses, while dropping
from a historically high level in the fourth quarter, were nearly 60% higher than the first
quarter of 2005. Our first quarter 2006 natural gas price was just about $10.00 per
MMBTU. This compares to $12.50 per MMBTU in the fourth quarter of 2005 and about
$6.50 in the first quarter of 2005. Compared to the first quarter of 2005, our operating
income was reduced due to higher gas costs by about $60 million, pre-tax, with roughly
70% in chemicals and the rest in glass.
• In chemicals, our ECU pricing was once again at an all-time high, marking the sixth
consecutive quarter where pricing hit an all-time high. These higher ECU prices assisted
us in achieving a new first quarter sales record in our chlor-alkali business, and in
combating high year-over-year natural gas prices and lower chlor-alkali volumes. As I
stated earlier, optical product sales were up 20% in the quarter, accelerating, in part,
due to the introduction of our Generation V Transitions lenses in Europe.

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Also, included in our chemical earnings, were additional environmental charges relating
to action plans involving several sites. Our commitment remains steadfast in working
quickly to remediate any environmental sites once a remediation program is agreed upon
by all necessary parties. For the full year we currently expect PPG environmental
spending might possibly exceed the upper end of our historic annual range of $10 to
$49 million, as we disclosed in our 2005 annual report.
• Year-over-year glass margins decreased slightly due to higher natural gas pricing.
Partially offsetting the natural gas cost were strong selling price and volume increases in
our performance glazings business as we continue moving toward a more value-added
product mix which supports the expanding commercial construction market.
Also assisting our glass earnings were additional manufacturing efficiencies. Total PPG
manufacturing efficiencies were about $30 million, with about three-fourths of that total
stemming from our glass business.
Last, but very important, we continue to use cash to benefit shareholders.
Now let’s review our earnings per share figures.
First Quarter Comparisons
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In summary, you can see on the slide titled First
First Quarter Comparisons Quarter Comparisons, we reported EPS of $1.11
cents which is a record first quarter for PPG.
2006 2005
Million EPS Million EPS
Included in the figure was an after-tax charge of $6
Net Income As Reported $ 184 $ 1.11 $ 95 $ 0.55
million, or $0.03 cents a share, related to the
Net Income Includes the Following Charges:
Asbestos Settlement - Net 6 0.03 5 0.03
Restructuring/Severance Costs 23 0.14 - -
asbestos settlement. Additionally this included $23
Adverse Legal Settlement - - 91 0.52
million after-tax or $0.14 cents per share relating to
Adjusted Net Income $ 213 $ 1.28 $ 191 $ 1.10
restructuring costs. Even more impressive is that
we delivered all-time first quarter earnings-per-
share even when you include reductions for these
unusual charges.
Let me remind you once again that our EPS numbers have included the impact of expensing
stock options since the first quarter of 2004, two years ahead of most companies.
Our tax rate in the first quarter was approximately 24.5%. The rate was reduced because of
a one-time tax benefit received as a result of favorable resolution of a tax item we appealed
stemming back to 1997 and the impact of the restructuring charges. Conservatively, we
currently expect our ongoing tax rate for the remainder of 2006 to be between 31.0% and
32.0%.
With regard to the asbestos adjustment, as we’ve been reporting since mid-2002, our
reported earnings include the charge or income resulting from adjusting the asbestos
settlement liability to its current value. As with last quarter, I will avoid the redundancy of
reciting the details of the asbestos settlement. For those who are not familiar with those
details, please refer to page 47 of our 2005 form 10-K for more information.

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A year ago we reported EPS of $0.55 in the quarter that included a 3-cent reduction related
to the asbestos settlement and a $0.52 cent per share charge relating to an unfavorable
settlement on a legal matter. The tax rate then was 23%, which was lower than our historic
ongoing tax rate because of the tax impact of the unfavorable legal matter.
In summary, our sales growth in several key markets continued as evidenced by our twelfth
consecutive quarter where we delivered a year-over-year quarterly sales record. Also our
earnings-per-share was our best first quarter ever in PPG history, and this is despite both
elevated natural gas costs and historically high coatings raw material costs. We were able
to achieve these excellent results by delivering on our long-term commitment to leadership,
technology, innovation and customer service.
Now let me talk about the overall market.
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Market Indicators
The slide detailing Market Indicators shows that
Market Indicators
GDP figures in North America are estimated to
1Q 2006
(change from 1Q 2005)
show first quarter growth of about 4.4% year-over-
U.S. Real GDP* 4.4%
year, following 1.7% growth in the fourth quarter of
U.S. Industrial Production* 3.2%
EEC Real GDP* 1.7%
last year. Industrial production in the first quarter
China Real GDP* 9.9%
N.A. Vehicle Production 2.3%
was up 3.2%. Both indicators reflect strong growth
N.A. Light Vehicle Sales 2.1%
levels coming off a reduced fourth quarter, and in
Western Europe Auto Production* 4%
Western Europe, New Registrations* 3%
our opinion part of the strength in the figures is a
U.S. Housing Starts* 2%
result of some delayed activity from the fourth
U.S. Commercial Construction (Real Investment)* 6%
quarter 2005.
*Estimates
In Western Europe, GDP expanded in the first quarter by 1.7%, year-over-year. This
represents a modest but improving trend versus recent history. Solid results have been
posted for several consecutive months and the economy appears to be gaining slight
momentum.
China and India continue to show strong GDP growth. Economist’s estimate first quarter
growth in China of about 9.9% and India of 7.6%. In our businesses, we have seen
consistently high activity throughout the quarter in these regions.
In North America, overall vehicle production was up about 2% in the quarter, consistent with
our past communications that the overall automotive OEM market volumes remain stable,
with the primary anxiety relating to market share shifts occurring among the major players.
Production was down 3% for Ford, 1% for Toyota and 6% for both Nissan and Chrysler.
Production was up 3% at General Motors and 7% at Honda.
Inventories of certain vehicle types and from a few carmakers expanded during the quarter,
although this is not entirely uncommon for a first quarter. Global insight projects flat North
American automotive production for the full year of 2006.
Also in the first quarter, according to Global Insight, Western European car production is
estimated to be up 4% with Eastern European production up more than 6%. Germany
realized gains of about 8%, while Italy rebounded from a poor first quarter of 2005 and

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posted a 28% improvement. France and Spain were modestly positive, while the UK was
down about 2%. Global Insight forecasts flat full year vehicle production in Western Europe,
and also relatively flat vehicle sales.
Back in the U.S., housing starts while slowing, still remain about 2 million units annually,
again a number that is very high versus historical standards. More important to PPG,
commercial construction continues to demonstrate sustained increases.
Key Topics
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Referring to the slide “2006 Key Topics”; first, on
2006 Key Topics
the economy, as we have been discussing for over
a year now and as the previous numbers bear-out,
• Economy
global economic expansion continues. The largest
change from 2005, is that overall growth rates in
• Inflation
two of the more significant world economies,
Energy
Western Europe and Japan, have shown consistent
Raw Materials
improvement. Also, the emerging economies,
including China and India, continue to post very
high growth figures.
The North American economy continues to grow and, as we have been commenting on for
the past several quarters, at a slow but sustainable pace, with most of the underlying
fundamentals remaining solid.
As we have stated many times in the past year, in our opinion, the economic expansion will
be prolonged by this sustained growth rate that is supported by good fundamentals and
discipline in most markets.
A second issue is inflation. While pockets of inflation exist, primarily in commodity and
energy sectors, we expect overall inflation to remain well in check. Labor costs, which are
by far the largest cost component, remain fairly stable due to productivity increases,
globalization, and other macro cost control factors. Energy costs, while still elevated
historically, have receded somewhat from their historic highs in the fourth quarter. Finally,
demand in most industries remains at steady levels, which permits producers to manage
both inventory and production.
With respect to PPG, as I mentioned earlier, our natural gas costs have increased year-
over-year. We use 60 to 70 trillion Btu’s of natural gas a year to generate power for the
production of chlorine and caustic soda and to produce glass and fiber glass. So if natural
gas costs change by a dollar per million Btu, our pre-tax costs change by about $60 to $70
million on an annual basis.
We have been active in our natural gas hedging program and earlier in the year hedged
about 30% of our second quarter and roughly 25% of our third quarter natural gas
requirements at prices between $7.50 and $8.25 per MMBTU. The primary goal of our
hedging program has always been to moderate, over time, large price fluctuations in our
natural gas purchases. Our current hedges will assist us in accomplishing this goal.
Since mid-2004, these higher energy costs have been coupled with increasing raw material
costs, primarily in our coatings business. Raw materials are the largest cost component for

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the coatings businesses. As I mentioned previously, this quarter our coatings raw material
costs were up approximately $20 million versus the year-ago quarter. As many of you
know, last year for the full year, our coatings raw material costs increased by a quarter-of-a-
billion dollars. However the costs increased in the first and second quarters last year, then
plateaued. We are now “calendarizing” these previous raw material cost increases.
Looking forward, we see a sporadic raw materials environment with isolated cost increases
in certain areas, coupled with cost declines occurring in certain areas/products and/or in
certain geographic regions. The energy environment remains volatile.
To summarize, the economic environment as we currently see it, continues to favor well-
disciplined and efficient companies such as PPG. Technology, customer service, innovation
and leadership, all PPG strengths, remain key traits when economic growth is at a
consistent but measured pace.
And now let me review our strong growth results from the quarter.
Approximate Trends in Sales – Total PPG
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For the quarter, sales were up 6%, pricing grew
Approx. Trends in Sales – Total PPG
4%, volume was up 3%, business acquisitions
contributed 1%, while currency reduced sales by
1Q 2006
about 2%. Once again, our sales performance was
(change from 1Q 2005) Sales Volume/Mix Price Curr. Acq./Other
6% 3% 4% -2% 1%
a first quarter record for PPG.
Sales increased in each one of our business
segments with coatings sales up 8%, chemicals
increasing 4% and glass growing by 2%.
Acquisitions added about $20 million to revenues. Currency subtracted just over $40 million
from our total revenues for the quarter and about $7 million from operating earnings.
Quarterly Volume Change – Total PPG
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The slide, Quarterly Volume Change – Total PPG,
Quarterly Volume Change – Total PPG
is one we show every quarter. Following the last
From Prior Year Quarter
two quarters which were hampered by the severe
10 N.A.
Asia U.S.
Industrial
8
U.S. hurricanes in the third quarter of 2005, our
Decline Hurricanes
Decline
6
Percent
year-over-year volumes grew by 3%. We continue
4
2
to see very strong growth in several businesses
0
-2
and regions. These volume increases were
-4
partially offset with a decline in chlor-alkali volumes
-6
-8
as we, and the industry as a whole, were running at
1998 1999 2000 2001 2002 2003 2004 2005 2006
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
an unsustainable level of near or over 100% of
capacity in the first quarter last year. Our chlor-alkali capacity utilization this year remains in
sync with the overall industry.
The next slide depicts our European volumes.

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Quarterly Volume Change – Europe
9
Our volumes for the quarter in Europe were up
Quarterly Volume Change – Europe
about 8%, our largest gain in six years. This is a
From Prior Year Quarter
very noted positive shift, however, the gains need
20
15
tempered as a result of the Easter holiday impact.
10
Percent
We estimate that a little less than half of the volume
5
gain is attributed to the fact the Easter holiday fell
0
-5
in the first quarter of 2005, and falls in the second
-10
quarter in 2006.
-15
2006
2004 2005
2000 2001 2003
2002
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Of note and generally encouraging are the Western
European economies demonstrated consistent
improvement for the past several months.
10
Quarterly Volume Change – Asia
Quarterly Volume Change – Asia
From Prior Year Quarter
Moving to the Asia volume slide … in Asia, we
25
20
continued to experience extremely healthy growth
15
as the market grows and we continue to expand
Percent
10
our presence. We once again achieved double-
5
digit volume growth for the entire quarter, with each
0
-5
month posting consistent and strong figures.
2000 2001 2002 2003 2005 2006
2004
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Our Asian sales have increased by about 100%
since 2002, and continue to become an ever increasing portion of our total coatings sales.
Even more important is that our Asian margins remain excellent and even exceed the
worldwide coatings industry margins by several percentage points.
Now let me discuss our business performance.
Approximate Trend in Sales – Coatings
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The next slide is coatings sales trends. In the first
Approx. Trends in Sales – Coatings
quarter, coatings enjoyed an all-time first quarter
sales record. Overall in the quarter, sales grew 8%
1Q 2006
(change from 1Q 2005) Sales Volume/Mix Price Curr. Acq./Other
with growth of nearly 20% in Asia. Coatings pricing
COATINGS 8% 6% 3% -2% 1%
increased 3%, volumes were up 6%, business
Automotive OEM 5% 8%
Refinish -3% -5%
acquisitions added 1%, while currency reduced
Industrial 10% 6%
Aerospace 14% 15%
Architectural 27% 15%
sales by 2%.
Packaging 6% 7%
Automotive OEM sales were up 5% and are an all-
time first quarter record. This is despite currency
negatively impacting sales by 3%. We continue to enjoy the benefits of an ever broadening
customer mix. Price was flat, which is significant considering the pricing pressures within
this industry. Total volumes were up 8%.
Refinish sales fell 3% as the first quarter of 2005 was the strongest first quarter on record
and obviously a very strong comparison figure.
Industrial coatings sales gained 10% and were not only an all-time first quarter record but a
record level for any quarter. Pricing improved 4% and currency dropped 1%.

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Volumes increased 6%, including Asian volume increases of over 35% and European gains
of 9%. We also added an additional 1% to our Asian sales due to our Crown Coatings
acquisition in 2005.
Aerospace sales were up 14% and also an all-time record for a first quarter and a record for
any quarter. Volumes were up 15%. Double-digit growth was once again realized in all
geographies, led by Asia growing at over 20%. We continued to expand both our OEM and
aftermarket presence in all parts of the world.
Architectural coatings sales grew 27% and were also a first quarter record. Price was up
mid-single digits coupled with volume gains of over 15%. Growth was realized in all
channels and our Iowa paints acquisition added 5%. We now have 392 company-owned
stores and we will continue to seek growth both organically or via acquisition.
Packaging coatings recognized an all-time first quarter sales record led by solid volume
gains.
To summarize coatings, five of our six coatings businesses enjoyed all-time first quarter
sales records, and in total we eclipsed our prior coatings first quarter sales record by over
8%, despite a 2% currency headwind. Based on our consistent and healthy quarterly
growth levels for the past several years, we remain confident in our coatings growth
strategies.
Approximate Trends in Outside Sales – Glass
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Moving to the glass sales trends slide, glass sales
Approx. Trends in Sales - Glass
improved by 2% as a result of volume gains.
1Q 2006
Sales in OEM Glass were down 1% with price
(change from 1Q 2005) Sales Volume/Mix Price Curr. Acq./Other
down 1%, volumes up 1% and currency subtracting
GLASS 2% 2% 0% -1% 1%
Automotive OEM -1% 1%
1%. The volumes remain fairly consistent with our
Automotive ARG 0% 0%
Insurance & Services 0% 1%
glass customer mix in the North American
Performance Glazings 13% 6%
Fiber Glass -3% 2%
automotive industry. Looking ahead, Global Insight
predicts an overall production decline in the second
quarter for the Big Three automakers.
Auto replacement glass sales were flat.
Performance glazings (flat glass) sales improved 13% resulting from strong volume gains as
a result of robust commercial construction. Also, our contractual fuel surcharges added
pricing gains which, in part, offset historically high natural gas pricing. Our new Texas
coater, which produces energy-efficient glass for the southeast portion of the United States,
started production late in the quarter.
Our fiber glass sales were down 3% versus the prior year. Volume gains offset pricing.
Currency was negative.

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Approximate Trends in Outside Sales –
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Chemicals
Approx. Trends in Sales – Chemicals
Shifting to chemical sales, overall chemical sales
were up 4% and in addition to being an all-time first
1Q 2006
quarter record, were a record for any quarter. We
(change from 1Q 2005) Sales Volume/Mix Price Curr. Acq./Other
CHEMICALS 4% -4% 8% -1% 1%
were able to more than offset chlor-alkali volume
Commodity 1% -11%
Specialty 11% 11%
declines with continued strong ECU pricing gains
and, once again, double-digit growth in optical.
In chlor-alkali, ECU prices reached another new
high and were up nearly 20% from a year ago as
both chlorine and caustic prices increased. As I mentioned previously, chlor-alkali volumes
declined as PPG and the industry ran at unsustainably high production levels in the first
quarter of 2005. Once again, although selling prices are high, natural gas prices remain
elevated.
Specialty chemical volumes were up in the quarter primarily due to continued gains in
optical. The optical business experienced volume gains of 20% -- led once again by the
strong performance of Transitions™. We introduced our Transitions Generation V product
into Europe in the quarter. Also, at the end of the quarter, we announced a partnership with
Oakley as they plan on offering a photochromic product line.
Our fine chemical sales slid about 40%, on soft volumes.
Use of Cash
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Now turning to the slide Use of Cash. We currently
Use of Cash
have a very strong cash position with just over
$400 million of cash and short term investments on
• Prudently fund businesses
hand. Many of you know we prioritize our uses of
• Dividends
cash. Overall, we have used and will continue to
• Manage debt
use cash to benefit shareholders.
• Pension & asbestos settlement
• Related acquisitions As far as “prudently funding our businesses,” as
stated previously, we believe capital spending will
• Repurchase stock
be between $300 to $400 million for the year. This
remains in the range of about 3.5% to 4.0% of sales, which we have communicated
previously.
Next, we continue our tradition of rewarding shareholders with annual returns in the form of
dividends as evidenced by the fact that we have paid uninterrupted dividends for 107 years.
Also in 2005, we extended our annual dividend increase streak to 34 consecutive years.
Regarding debt, our debt-to-total capital is about 28% and within our target range. Also,
with our refinancing of debt that we completed last year, we have only minimal amounts of
debt maturing over the entire next decade.
With respect to pensions, as stated last quarter, our U.S. pension plans do not require
mandatory funding until at least 2008 using conservative assumptions concerning pension
fund investment returns. As you know, there is current legislative activity relating to U.S.

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pension funding. Our comments relating to funding are based on the current pension rules.
Naturally, given our financial flexibility, we may opt to make voluntary contributions this year.
We would not expect the level of contributions to exceed $250 million dollars.
With regard to our proposed asbestos settlement; many of you have heard us discuss this
for the past several years … our arrangement on the settlement does not require any
funding until the settlement is final. If the settlement becomes effective before the end of
the year, we will use cash to satisfy about $375 million of the asbestos liability.
Next on our list for uses of cash are acquisitions – at the right price – that are related to our
current businesses. We have pursued in the past and we continue to review opportunities
that enhance our geographic presence, technology base or customer reach. Our current
expectation is that we will have a higher level of acquisitions this year versus the past
several years.
The final priority is to repurchase stock with the remaining funds. Looking back at history,
we have reduced our shares outstanding by over 40% since 1984.
We will address all these uses of cash while continuing to fully support those key elements
of our business strategy that provide us with a competitive advantage. These elements are
technology, customer service and organic growth.
Conclusion
In conclusion, there is a wide variety of economic data and, as is normally the case during
the economic cycle, some of this data is conflicting. What remains consistent is that
worldwide and North American economic growth continues, and growth has been
accelerating in many major regions of the world.
From our perspective, let me reiterate what I stated for the past year. That is, we expect
continued overall economic growth but at a generally slower and more erratic rate. I also
said that a slower, but fundamentally sound growth rate supports a prolonged expansion by
avoiding “excess demand,” which historically has led to widespread inflation.
With respect to inflation, despite high energy prices, overall inflation in the first quarter has,
in fact, remained well under control. Many other components have kept overall inflation low,
including items that have a much larger overall impact on inflation such as wages and other
retail consumer goods. Also, industry has remained disciplined in both inventory and other
working capital management.
The underlying North American economic fundamentals still remain solid. Stable economic
growth continues as consumer spending growth is gradually slowing, interest rates are
increasing at a measured pace, higher energy costs and slowing in new home construction
are being absorbed without a major economic disruption. Some offsetting factors providing
support to the growth rates are high levels of commercial construction, strong business
capital spending, stable labor markets, strengthening economies in Japan and Europe and
well-managed business inventories.

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As always, potential challenges to economic growth remain, including the FED overshooting
on interest rates and disruptions to certain industries or sectors, to just name a few. Also,
there always are uneven patterns of growth, both geographically and industry-by-industry.
However, the offsetting economic factors I just mentioned have positioned the economy,
barring any major shocks, for stability for several more periods.
Energy and worldwide industrial production are two primary macro economic factors that
influence PPG. The outlook for both of these factors in the next quarter is currently
favorable. In addition, many of the industries we serve in which we have experienced our
most dramatic growth, such as optical, aircraft and commercial construction, are all
projected to continue, at a minimum, along their recent trend lines.
Let me conclude with a reflection on our strong performance. We achieved both an all time
first quarter sales record and all time high first quarter earnings-per-share at PPG this past
quarter. We anticipate continued growth moving forward. Pricing actions continue in most
industries we serve as many efforts remain underway to fully recover higher input costs.
Naturally, our cost focus has and will remain at the forefront.
As we have demonstrated over the past several years, our focus on cost and our
complimentary mix of businesses has allowed us to consistently produce cash and deliver
excellent earnings results. Additionally, our sales growth over the same timeframe
continues to validate the success of our various growth strategies and initiatives. We
remain committed to executing all of our strategies and to our proven history of rewarding
shareholders.

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Forward-Looking Statement
Statements in this news release relating to matters that are not historical facts are forward-
looking statements reflecting the company’s current view with respect to future events and
financial performance. These matters involve risks and uncertainties that affect the
company’s operations, as discussed in PPG Industries’ reports filed with the Securities and
Exchange Commission, and the implementation of the asbestos settlement discussed in
PPG’s reports filed with the Commission. Accordingly, many factors could cause actual
results to differ materially from the company’s forward-looking statements.
Among these factors are increasing price and product competition by foreign and domestic
competitors, fluctuations in cost and availability of raw materials, the ability to maintain
favorable supplier relationships and arrangements, economic and political conditions in
international markets, the ability to penetrate existing, developing and emerging foreign and
domestic markets, which also depends on economic and political conditions, foreign
exchange rates and fluctuations in those rates, and the unpredictability of possible future
litigation, including litigation that could result if the asbestos settlement does not become
effective. Further, it is not possible to predict or identify all such factors. Consequently, while
the list of factors presented here is considered representative, no such list should be
considered to be a complete statement of all potential risks and uncertainties. Unlisted
factors may present significant additional obstacles to the realization of forward-looking
statements.
Consequences of material differences in results as compared with those anticipated in the
forward-looking statements could include, among other things, business disruption,
operational problems, financial loss, legal liability to third parties and similar risks, any of
which could have a material adverse effect on the company’s consolidated financial
condition, operations or liquidity.